Remodelers Prefer the Old to the New
A growing number of remodelers are turning to used products, as the number of reused-material stores around the country has doubled in the last five years from 150 to 300, according to the Building Materials Reuse Association.
The stores are popular because well-made products — some of them from new construction sites and others from previous eras — can be purchased at a fraction of current retail cost.
Many of the sites are run by nonprofit organizations and get all or most of their products from donations, many of which come from homes that have been torn down or "deconstructed" instead of being demolished.
Still, not all reusable material is cheap. For instance, Mountain Lumber in Ruckersville, Va., which manufactures products from reclaimed wood, charges an average of about $3,000 for flooring for a 300-square-foot kitchen and about $8,000 for an 800-square-foot one. And that's just for the product — the company does not do installation.
Source: The Washington Post, Allan Lengel (08/04/07)
Tuesday, August 7, 2007
Daily Real Estate News | August 6, 2007
Pros and Cons of Living by Water
While demand never seems to disappear for waterfront property, the slowing real estate market has presented some great deals by lakes and oceans.
“The desire to look out your window and see water will always be there and will always be an added incentive for someone to purchase a home," says Richard Swerdlow, Miami-based chief executive of Condo.com, an online marketplace for buying and selling condos.
But there are drawbacks to living the waterfront life. Among them: premium property prices, high insurance rates (especially if you're near a flood zone), and costly maintenance because moist air corrodes pipes and eats away at paint. But there are just as many perks.
Tonja Demoff, author of the book Bubble Proof: Real Estate Strategies That Work in Any Market, offers these five reasons for considering coastal property.
While demand never seems to disappear for waterfront property, the slowing real estate market has presented some great deals by lakes and oceans.
“The desire to look out your window and see water will always be there and will always be an added incentive for someone to purchase a home," says Richard Swerdlow, Miami-based chief executive of Condo.com, an online marketplace for buying and selling condos.
But there are drawbacks to living the waterfront life. Among them: premium property prices, high insurance rates (especially if you're near a flood zone), and costly maintenance because moist air corrodes pipes and eats away at paint. But there are just as many perks.
Tonja Demoff, author of the book Bubble Proof: Real Estate Strategies That Work in Any Market, offers these five reasons for considering coastal property.
- Ocean properties are in high demand and are often a great investment either for resale or rental income.
- Fewer mosquitoes and insects as the ocean breezes push the critters westward.
- Wonderful environment for children, away from the pollution of the city and a sedentary lifestyle.
- Great exercise potential for people of all ages, be it swimming or walking along the shore or coast.
- Ocean breezes make the hottest summer day feel cooler.
Source: Newsday, Laura Koss-Feder (08/03/2007)
Thursday, August 2, 2007
Daily Real Estate News | August 2, 2007
Tips for Renting Out a Vacation Home
A vacation property construction boom over the past few years has boosted the overall number of vacation homes, but falling home values have made renting out these homes for extra cash an appealing option.
The result is a glut of places to spend a vacation. One expert is urging home owners who want to rent out their properties to consider off-season business.
The second and third weeks of September and the third and fourth weeks of October are going to be great weeks especially in Florida; Georgia; Myrtle Beach, S.C.; Hilton Head, N.C.; the Tennessee mountains; and Branson, Mo. and the Ozarks, predicts Christine Karpinski, author of How to Rent Vacation Properties by Owner.
Karpinski has this advice for home owners considering the rental game:
A vacation property construction boom over the past few years has boosted the overall number of vacation homes, but falling home values have made renting out these homes for extra cash an appealing option.
The result is a glut of places to spend a vacation. One expert is urging home owners who want to rent out their properties to consider off-season business.
The second and third weeks of September and the third and fourth weeks of October are going to be great weeks especially in Florida; Georgia; Myrtle Beach, S.C.; Hilton Head, N.C.; the Tennessee mountains; and Branson, Mo. and the Ozarks, predicts Christine Karpinski, author of How to Rent Vacation Properties by Owner.
Karpinski has this advice for home owners considering the rental game:
- Post lots of photos and information on your Web page. Make sure the information you provide is complete and accurate, and don't exaggerate. That will help avoid disappointment from renters who expect more than there is. "I, as a consumer, would not rent a place without seeing photos of each bedroom and the living room," she says.
- Replace the furniture often. The normal wear and tear on upholstery and linens can prove a turn-off for vacationers. They're much more satisfied when everything is crisp and new.
- Hire a caretaker. You need someone on-call nearby if there's distance between you and your rental property. That way, if there's a problem — the heat goes off, the oven won't light, etc. — there's someone who can offer quick problem solving.
Source: BusinessWeek Online, Maya Roney (07/18/07)
Daily Real Estate News | August 2, 2007
More Buildings Go Green
Energy efficient homes might still be the exception, but green building is gaining momentum, according to the U. S. Green Building Council and the National Association of Home Builders.
In fact, green building has become a $12 billion industry, according to USGBC estimates. A decade ago, USGBC says, its value was “negligible.”
A survey of local home building associations shows that more than 97,000 homes have been built and LEED-certified since the mid-1990s using voluntary, builder-supported green building programs nationwide. That’s a 50 percent increase since 2004 when the last survey was conducted, according to NAHB.
And the increase doesn't show any signs of slowing. The U.S. Green Building Council recently welcomed its 10,000th member into the organization, which encompasses builders, universities, government agencies, and nonprofit organizations devoted to green construction.
Both NAHB and USGBC are in the process of developing its own set of standards and guidelines for sustainable residential green construction and to further promote the green industry.
—By Camilla McLaughlin for REALTOR® Magazine Online
Energy efficient homes might still be the exception, but green building is gaining momentum, according to the U. S. Green Building Council and the National Association of Home Builders.
In fact, green building has become a $12 billion industry, according to USGBC estimates. A decade ago, USGBC says, its value was “negligible.”
A survey of local home building associations shows that more than 97,000 homes have been built and LEED-certified since the mid-1990s using voluntary, builder-supported green building programs nationwide. That’s a 50 percent increase since 2004 when the last survey was conducted, according to NAHB.
And the increase doesn't show any signs of slowing. The U.S. Green Building Council recently welcomed its 10,000th member into the organization, which encompasses builders, universities, government agencies, and nonprofit organizations devoted to green construction.
Both NAHB and USGBC are in the process of developing its own set of standards and guidelines for sustainable residential green construction and to further promote the green industry.
—By Camilla McLaughlin for REALTOR® Magazine Online
Daily Real Estate News | August 2, 2007
Home Values for the Top 20 Markets
The annual growth rate in prices of existing single family homes across the United States continued to decline for the 18th consecutive month in May, according to the Standard & Poor’s/Case-Shiller Home Price Index.
Overall, the top 20 cities in the index declined 2.8 percent year-over-year, although five of the cities showed increases.
Cities measured by the index where values have increased in the 12 months are Atlanta, Charlotte, Dallas, Portland, and Seattle. Detroit continues to lead the metro areas in growth rate declines, down 11.1 percent from a year ago.
Here are the top 20 metropolitan areas and the percent of change in their real estate values over the last year:
The annual growth rate in prices of existing single family homes across the United States continued to decline for the 18th consecutive month in May, according to the Standard & Poor’s/Case-Shiller Home Price Index.
Overall, the top 20 cities in the index declined 2.8 percent year-over-year, although five of the cities showed increases.
Cities measured by the index where values have increased in the 12 months are Atlanta, Charlotte, Dallas, Portland, and Seattle. Detroit continues to lead the metro areas in growth rate declines, down 11.1 percent from a year ago.
Here are the top 20 metropolitan areas and the percent of change in their real estate values over the last year:
- Atlanta: 1.7 percent
- Boston: -4.3 percent
- Charlotte: 7 percent
- Chicago: -0.6 percent
- Cleveland: -2.8 percent
- Dallas: 1.8 percent
- Denver: -1.4 percent
- Detroit: -11.1 percent
- Las Vegas: -4.1 percent
- Los Angeles: -3.3 percent
- Miami: -3.3 percent
- Minneapolis: -3.5 percent
- New York: -2.3 percent
- Phoenix: -5.5 percent
- Portland: 5.7 percent
- San Diego: -7 percent
- San Francisco: -3.4 percent
- Seattle: 9.1 percent
- Tampa: -6.7 percent
- Washington, D.C.: -6.3 percent
— REALTOR® Magazine Online
Wednesday, August 1, 2007
Daily Real Estate News | August 1, 2007
NAR: Market Shows Signs of Improvement
The market is likely to stabilize in the months ahead, according to the NATIONAL ASSOCIATION OF REALTORS®’ forward-looking indicator on pending home sales.
The Pending Home Sales Index, based on contracts signed in June, was 5 percent higher from the downwardly revised May index of 97.5, but is still 8.6 percent below June 2006 when it stood at 112. Nevertheless, this 5 percent monthly gain is the largest in more than three years, since a 6.1 percent increase was recorded in March 2004.
Lawrence Yun, NAR senior economist, says it’s encouraging that the increase occurred in all four major regions of the United States. “However, it is too early to say if home sales have already passed bottom,” he says. “Still, major declines in home sales are likely to have occurred already and further declines, if any, are likely to be modest given the accumulating pent-up demand.”
The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.
What Happened Regionally
Here’s a breakdown of what the PHSI showed across the country:
The market is likely to stabilize in the months ahead, according to the NATIONAL ASSOCIATION OF REALTORS®’ forward-looking indicator on pending home sales.
The Pending Home Sales Index, based on contracts signed in June, was 5 percent higher from the downwardly revised May index of 97.5, but is still 8.6 percent below June 2006 when it stood at 112. Nevertheless, this 5 percent monthly gain is the largest in more than three years, since a 6.1 percent increase was recorded in March 2004.
Lawrence Yun, NAR senior economist, says it’s encouraging that the increase occurred in all four major regions of the United States. “However, it is too early to say if home sales have already passed bottom,” he says. “Still, major declines in home sales are likely to have occurred already and further declines, if any, are likely to be modest given the accumulating pent-up demand.”
The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.
What Happened Regionally
Here’s a breakdown of what the PHSI showed across the country:
- West: the PHSI increased 8.6 percent in June to 103.6, but was 5.5 percent below a year ago.
- Northeast: the index rose 3.1 percent from May to 96, which is 2.4 percent lower than June 2006.
- South: the index increased 4.7 percent in June to 111.6, but was 12.7 percent below a year ago.
- Midwest: the PHSI rose 3.5 percent in June to 92.5, which is 8.2 percent lower than June 2006.
— REALTOR® Magazine Online
Tuesday, July 31, 2007
Daily Real Estate News | July 31, 2007
High Home Prices and High Tax Rates Go Together
The parts of the United States where home prices are highest – New York, Boston, Washington, D.C., San Diego, Los Angeles, the San Francisco Bay Area, and Hawaii – are also areas where residents pay the highest taxes.
New York City high-earning residents face a 6.85 percent top state income tax and a 3.65 percent top city tax. That’s before facing a 35 percent federal tax rate. The California state income tax is 9.3 percent, kicking in at $43,500. And for people who make more than $1 million a year, California adds another 1 percent.
As a result, some big-city millionaires are taking their money and moving. Outgoing California millionaires of recent years include Netscape's founder, Jim Clark, who moved to Florida, and eBay's Pierre Omidyar, who moved to Nevada.
Says Rich Karlgaard, publisher of Forbes magazine: “Markets decide house prices. People decide tax rates. I have a hunch we'll see a Blue State tax revolt soon.”
Sources: Forbes, Rich Karlgaard (08/13/2007)
The parts of the United States where home prices are highest – New York, Boston, Washington, D.C., San Diego, Los Angeles, the San Francisco Bay Area, and Hawaii – are also areas where residents pay the highest taxes.
New York City high-earning residents face a 6.85 percent top state income tax and a 3.65 percent top city tax. That’s before facing a 35 percent federal tax rate. The California state income tax is 9.3 percent, kicking in at $43,500. And for people who make more than $1 million a year, California adds another 1 percent.
As a result, some big-city millionaires are taking their money and moving. Outgoing California millionaires of recent years include Netscape's founder, Jim Clark, who moved to Florida, and eBay's Pierre Omidyar, who moved to Nevada.
Says Rich Karlgaard, publisher of Forbes magazine: “Markets decide house prices. People decide tax rates. I have a hunch we'll see a Blue State tax revolt soon.”
Sources: Forbes, Rich Karlgaard (08/13/2007)
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